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Tencent and BHP rallies could boost the JSE

Naspers associate has rallied 9% so far this week, returning it to levels last seen in August 2018

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06 March 2019 - 08:28 Nick Hedley

The JSE is likely to open slightly higher on Wednesday thanks in part to a three-day share rally by Naspers’s associate company, Tencent, and a strong opening from BHP Group in Australia.
Tencent, the owner of the popular WeChat app, was 1.7% up at the lunch break in Hong Kong. The stock has rallied 9% so far this week, returning it to levels last seen in August 2018.
Naspers, which owns about 31% of Tencent, has gained about 3% this week, placing the stock at its best level since September 2018.
Tencent’s rally came despite a rare rating cut. The stock, which most analysts rate a buy, was downgraded by Sinolink Securities to neutral from buy, according to Bloomberg. The brokerage said consensus expectations for earnings were “overly optimistic”.
Meanwhile, another JSE heavyweight, BHP Group, was up 0.8% in Australia.
Asian stocks were mixed on Wednesday, with the Hang Seng index 0.3% higher and the Nikkei 225 lower by 0.7%. Overnight, US stocks closed marginally lower.
JSE-listed c...

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